Jorgen Rex Olson
Jorgen Rex Olsen
Member Since: May 21st 2018
Jorgen Rex Olson is a graduate of Washington State (B.A., cum laude, 2008) and the Indiana University (McKinney) School of Law (J.D., 2012). He writes for Mackay, Caswell & Callahan, P.C., one of the leading tax law firms in New York State.
Mackay, Caswell & Callahan, P.C.
Jun 8th 2020
On the first question, if the individual who originally owned the property gave the property to the LLC in 2015, and the LLC has always held the property for investment purposes, then there will be no issues regarding the holding period if the LLC tries to conduct an exchange. The fact that the original owner gifted the property to the LLC doesn't affect the issue of whether the "held for" requirement has been satisfied by the LLC. As long as the LLC has indeed held the property for investment since the time the property was received, then the held for requirement should be met. The gifting of the property by the original owner does present a gift tax issue, however.
On the second question, if the LLC sells the property and keeps the proceeds, then the only way to avoid capital gains taxation would be to use operating losses, or donate the funds to a qualified charitable organization, or use another legitimate method of tax avoidance.
Let me know if you need any clarification or have further questions.